Are you confident your scheme’s on track?
Managing a pension scheme can be challenging; as with any long-term journey, bumps in the road are inevitable.
As a trustee, it’s your job to navigate these bumps to ensure your scheme remains on track.
We designed Pension Pitstops to help you.
What is Pension Pitstops?
We like to think of managing a pension scheme like navigating a long car journey.
To ensure you get from A to B as smoothly as possible, it’s important to pull over every once in a while to refuel, check your tyre pressure and look at traffic updates.
Like an MOT, Pension Pitstops gives you the opportunity to gain an independent, expert opinion on whether everything’s working as it should be or if any areas need attention.
How does it work?
Pension Pitstops guides you through seven key areas essential to helping you reach your endgame.
As well as a tailored assessment of your scheme against each pitstop, you’ll also receive bespoke, independent guidance on how to tackle any problem areas.
Pitstop 1: Goals & Objectives
Pitstop 2: Sustainable Investment
As long-term investors, pension schemes need to consider long-term risks; this includes ESG (or sustainability) factors. Whether the aim is to comply with regulations or to reach net-zero carbon emissions, it’s important you consider your sustainability goals alongside your broader investment objectives.
Pitstop 3: Risk Management
Once you’ve decided where you’re going, and have a good idea about when and how you’re going to get there, it’s crucial you plan for obstacles along the way. It’s inevitable that a pension scheme will run into risks during its lifetime, so relying on luck isn’t an option – especially when member benefits are at stake. By anticipating and planning for key risks up front, so you’re far less likely to be hit with any nasty surprises along the way.
Pitstop 4: Investment Strategy
Just as an efficient engine is key to performance on the road, a sound investment strategy is crucial to delivering good member outcomes. We’ve developed a tried and tested process to design investment strategies that are robust, practical and aligned with your goals and objectives.
Pitstop 5: Liquidity Management
Before setting out on a long journey, it’s important to refuel (or recharge!) – and it’s helpful to add a little extra too, to cover any unexpected detours. The same applies to managing your scheme’s cashflows; its crucial you have a robust plan in place to access collateral when you need it, without sacrificing expected returns along the way.
Pitstop 6: Operational Efficiency
When you want to get from A to B, what really matters is the engine, not the go-faster stripes. Similarly, when designing an investment portfolio, what’s going to help you reach your endgame is taking long-term strategic decisions, not spending hours scrutinising quarterly market moves. By delegating the responsibility of operational decisions and activities, you can spend less time debating the small stuff and more time on the areas that really matter – allowing you to achieve better member outcomes.
Pitstop 7: Tech-based Governance
Without a speedometer, it’s difficult to judge how fast you’re going and you’re likely to get a speeding ticket. And if the speedometer takes any longer than a second to update, it means you’ll be basing your driving on stale information. The same principle can be applied to investment decision-making. Having the right tech-based governance solution allows you to understand the impact of what’s happening in today’s markets, and consider any immediate actions that should be taken in response.
How can Pension Pitstops help you?
An independent assessment of your scheme
Get an objective snapshot of the overall health of your scheme.
Identify problem areas
Pinpoint any areas of concern so you know where to focus your limited governance budget.
Receive bespoke, tailored recommendations
Receive actionable advice to ensure a smooth onward journey.
Unsure whether your scheme needs a full MOT? Opt for a fast-track assessment instead
If you’ve already identified the area you’d like to focus on – whether that’s formalising your approach to sustainable investment, establishing a robust governance process, or reviewing your LDI portfolio, we can provide a bespoke, fast-track assessment to help you get back on course as quickly as possible.
As an independent investment consultant, we’ve been supporting defined benefit pension schemes in realising their investment goals for well over a decade. But don’t just take our word for it:
Chair of Trustees
Reuters Pension Fund
Speak to a member of the team today
Whichever route you choose, we’d love to speak to you about how we can help you reach your endgame
